PBK Budget & Business Plan 2026

Economic growth

Deficit

Inflation

ROBOR 3M

IRCC

EURIBOR 3M

1. ‌The Bank's objectives and business plan for 2026

   The main short and medium-term objective is the long-term increase of profitability through a sustainable business model in order to conserve and develop capital by:

   • Increase in total assets by 17%, up to RON 6.2 billion

   • Reaching a Return on Equity (RoE) in 2026 of over 15%, respectively 16.1% and obtaining a Net Result of RON 85 million

   • Increasing the balance of loans granted to customers by 18%, RON +531 million, expected to take place in 2026 compared to 2025

   • Increase in commercial financing of 17% (RON +681 million), evolution focused mainly on expansion of overnight deposits and of collateral deposits

   • Diversification of financing sources by using an amount of EUR 25 million from the EUR 50 million financing granted in 2024 by the European Investment Bank

   • Attracting new customers and increasing the number of products per customer is a priority goal for business lines in 2026

   • Development of operating income by 25%, RON +65 million, through the contribution, mainly, of net interest income and net commission income representing the core activity of the bank

   • Managing costs in a responsible manner by assuming the development plans and investment projects planned by the Bank for the year 2026, as well as the forecast inflationary constraints

   • Optimizing the business model so that increasing efficiency leads to achieving a sustainable cost/ income ratio; for the year 2026, the aim is to improve the ratio from 64% in 2025 to 55% (without taking into account the 4% turnover tax)

     The strategic ratios targeted by the Bank in 2026 are presented below. These are presented from the perspective of Management Accounting (according to internal monitoring):

     	Actual	Actual	Budget
     INDICATORS	2024	2025	2026	2026 vs 2025
     Loans (gross) to Deposits	67%	71%	72%	1%
     Loans (gross) / Total Assets	55%	55%	55%	0%
     Liquid Assets / Total Assets	39%	40%	38%	-1%
     Cost / Income (Tax on turnover excluded)	71%	64%	55%	-9%
     Cost / Income (Tax on turnover included)	75%	69%	61%	-7%
     Return of Assets (RoA)	0.8%	1.0%	1.5%	0.5%
     Return of Equity (RoE)	8.5%	11.0%	16.1%	5.0%
     Cost of Risk (CoR)	-0.4%	-0.6%	-0.7%	-0.1%
     Non Performing Exposure Ratio (NPE)	4.1%	3.5%	3.3%	-0.2%
     Coverage of NPL	57%	56%	55%	-0.6%

     During this period, the Bank will pursue an optimal capital adequacy, following the simultaneous realization of the following desideratum:

   • Compliance with prudential parameters (TSCR + capital buffers) in order to ensure the capital base necessary for the bank's development

   • Optimal allocation of capital in productive assets with superior yield. In this regard, the Bank will ensure an optimum between loans placements, interbank placements and Government Bonds portfolio

   • In the area of commercial lending, the Bank will ensure that the investments to optimize the return on capital, establishing the pricing policy according to all relevant parameters (the level of RWA involved in each financing/customer subsegment, the acceptable level of risk, etc.), and the credit decision will require meeting a minimum level of capital profitability.

     The Bank propose an increase of the loan portfolio in the conditions of achieving a significantly higher level of efficiency. In this sense, the Bank will seek to reach a minimum level of credit volumes

     / employees and credit volumes / bank unit, regardless of the business sub-segment that generates the respective assets. The realization of this desideratum will be fulfilled both by increasing the productivity of the sales force, and by optimizing the entire approval process.

     Increased attention will be paid to increasing non-risk revenues, both in the retail area and in the area of legal entities and also to the revenues coming from financial activity.

     Loan sales plan by segments for 2026

     For the budgeting of new loan production, the Bank will seek to reach a minimum level of loan volumes

     / employees and loan volumes / branch, seeking the alignment to the market, on each business subsegment that generates these assets.

     The realization of this desideratum will be fulfilled both by increasing the productivity of the sales force, and by optimizing the entire approval process, the on-going optimization of sale processes, the simplification and automatization of target flows, the applications writing and decision-making processes.

     Values in M RON	Retail	IMM	Corporate	Agro	Micro	APIA		TOTAL	YoY
     Actual 2024	171	450	288	207	197		57	1,370	70%
     Actual 2025	284	429	257	248	237		81	1,538	12%
     Buget 2026	354	467	427	341	254		47	1,889	23%

     
     
     

     NPL Strategy

     For the budgeting of financial projections, the Bank considers the continuing of NPL recovery rates from the old portfolio, as well as the increase in quality management activities regarding new loan production.

     The Bank has as strategic objectives:

     • Maintaining the Coverage Ratio of NPL above 55%

     • Reduction of NPE rate to 3.3%

     During 2026, the Bank also considered the write-off of NPLs from the balance sheet in amount of RON 12.6 million.

2. ‌Financial projections for 2026

• The increase of net banking income by the contribution of all its components

• The evolution of operational costs taking into account estimated inflation, sustaining commercial activity and investments in digitalization